Is Your Home Cyber Secure? Locked Doors Won’t Stop Hackers

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Authors: Gosha Olszewski Neal Gardner

Cybersecurity in the home is no longer just a "nice-to-have." Many homeowners may overlook digital threats that can compromise personal and work-related data. With the average US household now containing at least 21 connected devices, home network devices experience an average of 10 attempted attacks every 24 hours.

The most vulnerable devices are smart TVs (34%), smart plugs used to turn non-smart appliances into smart devices (18%), digital video recorders (13%) and routers (12%).¹ Hackers are exploiting vulnerabilities like weak passwords, unpatched software and unencrypted communication to compromise security.

In 2024, security exploits — vulnerabilities in software, hardware or systems — accounted for 14% of all cyber attacks. That's three times more than in 2023. And 68% of data breaches resulted from human error, with phishing scams being the primary culprit.² These rising cyber incidents underline the importance of robust digital defense in the home.

What the data about cyber attacks tells us

72% of all cyber attacks in the US are ransomware attacks.³Ransomware is malicious software that locks your files (encryption) or your entire system, making them inaccessible. Attackers then demand a ransom, often in form of money to provide the key needed to unlock your data.
Email remains the primary malware delivery method, accounting for 94% of attacks.³
Phishing remains the leading method for cybercriminals to carry out targeted attacks.⁴
64% of Americans don't know what to do after experiencing a data breach.³
One in three homes with computers are infected with malicious software.⁵

Why cybersecurity should concern you

As our lives become more digital — from managing finances to staying connected on social media — we get more exposed than ever to cyber threats. There's a constant risk of hackers getting access to our personal devices, stealing information or gaining access to our home network.

Some significant risks include:

Account hacking: Unauthorized access to your personal or social media accounts.
Phishing attacks: Fraudulent emails or messages designed to trick you into revealing sensitive information
Malware: Harmful software like viruses or spyware that can infect your device and steal or destroy data.
Identity theft: Cybercriminals can use your personal information to commit fraud or gain access to your accounts.
Data breaches: Personal or financial information may be exposed due to poor security systems.

Cybersecurity best practices

Following cybersecurity best practices can help keep you protected:

Start with strong, unique passwords and enable two-factor authentication.
Keep your devices and software up to date.
Be cautious with links or emails from unknown sources.
Use trusted antivirus software.
Secure your Wi-Fi.
Avoid oversharing personal information online.
Back up your data regularly.
Consider obtaining personal cyber insurance to stay protected in case of any attack.

Real alert or potential cyber attack? Remember your cyber training

Emma received a text claiming to be from her bank, urging her to verify suspicious activity. Before clicking, she remembered her cybersecurity training and instead logged into her banking app directly — no suspicious activity was found. Her identity protection service later flagged this phishing attempt, helping her avoid financial loss and identity theft.

What is personal cyber insurance?

Personal cyber insurance is a policy that protects individuals from financial losses caused by cyber threats like identity theft, online fraud, ransomware and data breaches. It can cover recovery costs, expert support and losses, including ransom demands.

What does personal cyber insurance cover?

Personal cyber insurance offerings differ from policy to policy but may include:

Pre-incident support: Cyber risk assessments, security guidance and identity theft prevention.
Security and privacy breach costs: This covers legal fees, IT forensics, customer notifications and fraud resolution after a personal data breach.
Post-incident support: 24/7 assistance for cyber incidents, including identity recovery and expert consultation.
Cyber extortion: Protection against ransomware and cyber threats, including ransom reimbursement and expert negotiation.
Damage to digital assets: Covers loss, corruption or theft of personal digital data, including photos, files and online accounts.
Financial loss from cyber fraud: Reimbursement for stolen funds from online scams, phishing or unauthorized transactions.
Liability costs: Protection against legal claims arising from personal data breaches, cyberbullying or online defamation.

Does homeowners' insurance cover cyber theft?

Standard homeowners' insurance typically does not cover cyber threats. However, personal cyber insurance fills this gap. Some insurers offer an add-on endorsement to the homeowners' policy that includes identity theft protection and cyber extortion up to a specific amount. Given the growing need to offer this protection, many carriers now offer cyber insurance as a standalone policy, which may provide broader and more comprehensive coverage.

Who needs personal cyber insurance?

People who conduct financial transactions online, such as banking transactions, shopping or investments.
People who store sensitive personal data on devices, including passwords, financial records and identity documents.
Anyone who uses smart home devices, such as security cameras, smart locks and virtual assistants.
Employees working from home who handle confidential business or personal information.

How can Gallagher help?

Gallagher offers expert consultation to protect your smart home, personal data and online activities.

Our personal cyber insurance solution experts can provide you with:

Coverage for breach event costs and security/privacy liability, including notifications, credit monitoring, legal defense, settlements and judgments.
Identity theft protection covering credit report fees, monitoring services, legal assistance and access to resources via IDX (Internet Data Exchange).
Data recovery costs for damaged or stolen data on home computers or smart devices due to system failure.
Cyber extortion and cybercrime coverage for ransomware, expert IT assistance, lost funds from phishing, wire fraud or password theft.
Cyberbullying support including therapy, caregiver expenses, relocation, IT help to remove harmful content, tutoring or tuition for school changes.

To learn more, contact our Personal Insurance advisors.